Security of confidential information is crucial during business processes and transactions. Virtual data rooms are used to share and store private documentation in a secure space with controlled access for users. They are commonly employed to perform due diligence in M&A transactions, but can be utilized for other reasons.

The top VDRs have a range of features to ensure documents are stored securely and shared during a deal or process. They can, for instance include two-factor authentication, which requires not only the password is used, but also real information and codes that are unique to each user. This minimizes the risk of data breaches resulting from compromised passwords. Many VDRs also offer granular permissions that can restrict access to certain files. IP restriction is another feature that limits access to virtual data rooms to certain IP addresses. This prevents sensitive data from being downloaded onto unauthorized Click Here devices, and helps keep information from being leaked.

Other features available on certain VDRs include watermarking, which provides an unchangeable identifier to each document, and audit logs, which record every action on the data room’s files. These are used to determine who has opened or modified files and they can also help in the investigation of data breach. Other helpful features include secure spreadsheet viewing, which ensures that data stored in Excel files can only be viewed by a specified users.

Check the certifications and standards of the data room to ensure that it is providing the appropriate level of security for your documents. Idealy, it should be PCI DSS Level 1 ISO 9001 / ISO 27001 FIPS 140-2 MTCS Level 3. Some investment banks have a list of approved vendors that lists data rooms that they are pleased to work with. You should choose a data room provider who can demonstrate these credentials and has a solid reputation in the industry.